The price level rises in the short run if
A. aggregate demand or aggregate supply shifts right.
B. aggregate demand shifts right or aggregate supply shifts left.
C. aggregate demand shifts left or aggregate supply shifts right.
D. aggregate demand or aggregate supply shifts right.
Ans: B. aggregate demand shifts right or aggregate supply shifts left.
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If inflation in Russia is higher than it is in the United States,
A) the value of the dollar will rise in the long run. B) the purchasing power of the ruble in buying Russian goods will rise relative to the dollar. C) the value of the ruble will rise in the long run. D) Both A and C are correct.
The Consumer Price Index was 247 in year 1 and 272 in year 2. The rate of inflation in year 2 was:
a. 6 percent b. 12 percent c. 8 percent d. 10 percent